‘IT dept has to pass reassessment order on demand against Cong by March 31’
The Income Tax department has to pass a reassessment order for assessment years 201415 to 202021 by March 31 in the matter of Indian National Congress (INS), sources said. Various reports suggest post reassessment, the demand could be more than ₹500 crore.
Meanwhile, ₹135 crore for AY 201819 has been recovered from the party. Also, the next date of hearing for notice related AY 199495 in Supreme Court is April 1. Till date, the grand old party has not got relief in litigations filed before various quasi judicial bodies and courts.
According to sources, on the basis of various searches related to INC, reassessment proceedings under section 153C (Assessment of income of any other person.) of Income Tax Act were initiated
Various reports suggest post reassessment, tax demand could be over ₹500 crore
for AYs 201415 to 202021. “During the entire proceedings, Congress has not been provided reply on merits. Each objection raised was duly disposed off,” a source said.
PENDING HEARINGS
It may be noted that INC has already filed writ against proceedings of all the seven years. Out of the seven years, hearings have been completed in case of AY 1415, 1516, and 1617 and the order is reserved by the Delhi
High Court. For the remaining four years, the date of hearing is to be notified soon. Talking about notice for AY 199495 (FY199394), INC has moved the Supreme Court and next date of hearing is April 1. “Appeal effect of the said order was given creating a demand (tax plus interest) of around ₹53 crore,” a source added.
The issue first surfaced because of demand raised for AY 201819. According to sources, on July 6, 2021, assessment order of AY 19 was passed creating a demand of ₹105.17 crore. Without paying required 20 per cent of the disputed demand in full, the INC filed an appeal before CIT(Appeal). However, it was dismissed as required amount was not deposited.
Now, a notice of recovery was served on the the INC and measures were undertaken to recover demand of around ₹135 crore (tax + interest).